Productive cost analysis and evaluation of cost-return models of pig farms in Greece

Abstract

Pig farming is one of the most important sectors of animal production in Greece. One of the main problems that pig farming is faced with in Greece, in relation to the other countries of Europe, is the high cost of production, which affects the competitiveness of the sector both in the international and domestic market. From an analysis of the cost data, it is found that labour expenses decrease as the size of the farm increases, while the annual livestock, veterinary care and other expenses increase along with the size of the farms. The feeding expenses seem to be higher in medium-capacity farms, and lower in low-capacity farms. Furthermore, the analysis shows that the greatest effect and significance in the determination of the total cost is attributed to the cereal grain (raw feed material), that constitutes a basic part of the supplied livestock feed. This analysis serves to prove that there is a need for financing new building installations and for the purchase of modern mechanological equipment, since such a step will lead to increased productivity, lower the production cost and improve the working conditions for all those employed in this sector.